Genta to Acquire Salus Therapeutics, Inc., Expanding Leadership Position in DNA/RNA-Based Medicines
Thursday August 14, 4:47 pm ET
Acquisition Extends Oncology Drug Discovery Program and Strengthens Platform In Antisense, RNAi, and Oligo Delivery Platforms
BERKELEY HEIGHTS, N.J., Aug. 14 /PRNewswire-FirstCall/ -- Genta Incorporated (Nasdaq: GNTA - News) announced today that the company has entered into an agreement to acquire Salus Therapeutics, Inc., a company that specializes in the identification and development of drugs that are based on DNA or RNA, including antisense, small interfering RNAs (siRNA), and delivery systems for DNA/RNA-based drugs. Salus is a privately held company located in Salt Lake City, Utah. Upon closing, Genta will issue approximately $13 million in Genta stock to Salus shareholders as an upfront payment. Contingent upon the achievement of certain preclinical and clinical milestones, an additional $17 million dollars may be paid in stock or cash at Genta's option. The purchase of Salus by Genta has been approved by the Boards of Directors of both companies and by a majority of the Salus stockholders. The acquisition is expected to close within the current fiscal quarter. In a separate transaction, Genta also announced that it had acquired a non-exclusive license to a broad patent covering siRNA from the Carnegie Institution of Washington. Senior management from Genta will discuss this acquisition on a conference call and webcast beginning at 8:30 a.m. EST on Friday August 15, 2003.
The focus of the research and development program at Salus has been in three critical areas. First, Salus has developed a proprietary screening system that rapidly identifies "hot spots" -- or key target areas in messenger RNA -- that can be attacked using both antisense and RNAi. Second, the company has developed methods of using single-stranded small interfering RNA and micro-RNA molecules to knockdown gene expression in target cells. "RNA interference" has rapidly emerged as one of the most potent oligonucleotide-based techniques for gene profiling and highly targeted therapeutics. Lastly, Salus has developed a proprietary delivery platform that has been shown to improve the pharmaceutical properties of oligonucleotides.
"DNA and RNA based therapies are poised to make an enormous contribution to human health, and we are committed to developing the next generation of these drugs for cancer patients," stated Dr. Raymond P. Warrell, Jr., Genta's Chief Executive Officer. "The Salus acquisition complements our current strengths, creates important new opportunities, and provides Genta with valuable tools and personnel. Salus has developed robust drug discovery platforms for antisense and siRNA drugs that are immediately applicable to our core interests."
"Genta has established itself as the dominant player in the application of oligonucleotide-based therapeutics," commented Richard Koehn, Chief Executive Officer of Salus. "We are excited to join the Genta team and believe that they are best positioned to effectively and expeditiously translate our development programs into the next important clinical advances."
About Salus Therapeutics
Salus Therapeutics was founded in 1999 with seed funding provided by Utah Ventures and vSpring Capital. Salus currently leases approximately 11,000 sq. ft. of laboratory space in the University of Utah Research Park. The company is focused in three core areas of research, as follows:
OptiSense(TM) Oligonucleotide Target Identification Technology:
OptiSense(TM) is a novel, patented, cell-based discovery process that
enables a systematic identification of drug candidates for any gene of
interest. Optisense enzymatically generates a library of
oligonucleotides that cover all possible overlapping cDNA fragments to
a specified gene. Once generated, optimized oligos are mapped back to
the gene sequence, which yields a map of "hot spots" -- locations
within the gene sequence that are maximally susceptible to inhibition
by complementary DNA or RNA-based drugs.
RNAi Therapeutics: Salus has employed a proprietary siRNA approach that
operates via RNA interference to knock down mRNA of targeted genes. RNAi
drugs incorporate specific antisense sequences that have been discovered
using OptiSense(TM) screening and are then structurally modified to
improved stability. These stable RNA structures have been tested against
several anticancer drug targets.
PolyBus(TM) Polymeric Drug Delivery Technology: Salus has produced a
variety of patented carriers for nucleic acid-based drugs. These
polymers are both biocompatible and non-toxic, and they allow direct
complexing of drug and carrier to maximize intracellular delivery. The
polymers can be "tuned" to achieve specific controlled release of most
chemistries, including antisense, decoys, and siRNA.
About the RNAi Patents
The RNAi patents derive from work first reported by Andrew Fire, Craig Mello and colleagues at the Carnegie Institution of Washington and The University of Massachusetts (see link: nature.com taf/DynaPage.taf?file=/nature/journal/v391/n6669/abs/391806a0_fs.html.) As the seminal description of RNA interference, these patents are considered fundamental to the field, as they broadly cover processes for introducing RNA into cells to control gene expression.
Conference Call and Webcast Information
The webcast can be accessed at: invite.mshow.com
We suggest that you login to the webcast at least 30 minutes prior to the start of the call as there may be software you are required to download to view the slide presentation.
The audio only portion of the conference call can be accessed at:
If you are within the US or Canada call: (888) 529-1867
The conference code is: 2263367
If you are International call: (706) 643-1282
The conference code is: 2263367
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